Opinions on HTA?

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Opinions on HTA?

Post by DebER » Sun Dec 12, 2010 1:50 pm

Does anybody like Healthcare Trust of America?

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Re: Opinions on HTA?

Post by DebER » Tue Dec 14, 2010 9:36 am

Or have any opionions of Healthcare Trust of America? Thanks.

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Re: Opinions on HTA?

Post by DebER » Tue Dec 14, 2010 1:11 pm

Here is the link http://www.htareit.com
Any thoughts?

clickeroo
Posts: 4
Joined: Wed May 26, 2010 6:45 pm

Re: Opinions on HTA?

Post by clickeroo » Sun Dec 26, 2010 1:00 pm

I am a shareholder in Healthcare Trust of America, and there have been a number of developments that you should know about. On October 18, 2010, HTA entered into a "Redemption, Termination, and Release Agreement" with Grubb & Ellis, its former advisor. HTA made a payment to Grubb & Ellis in the amount of $8 million. This completed Healthcare Trust's transition from a Grubb managed entity to an internally managed REIT - all good.

About one week after that, on October 25, 2010, Healthcare Trust filed a definitive proxy statement detailing proposed amendments to HTA’s charter would prepare HTA for a potential IPO - that is the liquidity event that current shareholders all want. This is even better

Unfortunately, the IPO price, according to what I have heard, may be about $10/share, maybe less, and the IPO would also not be a true IPO - it would be a "phased-in liquidity program", which means we would be unable to sell right away. This was what Wells did with its Piedmont IPO, and RW covered it in the post "[url=http://reitwrecks.com/2010/02/piedmont-office-reit-finally-goes.html]Piedmont REIT Finally Goes Public....Sort of"[/url].

One month after that, HTA amended its share repurchase plan effective January 1, 2011, and the amendment would limit its share repurchase program to a maximum of $10 million redemtions per quarter, subject to "available funding." Since the the plan will be funded exclusively by proceeds from the sale of shares under its DRIP during each quarter, this could severely limit "available funding," and the $10 million limit, in my view, is nothing more than a smokescreen.

Based on an 8-K filed on August 16, 2010, it appears that HTA is going to use J.P. Morgan Securities to underwrite the IPO. According to the 8K, J.P. Morgan Securities, Inc. is HTA's "lead strategic advisor in exploring actions to maximize shareholder value, including the assessment of various liquidity options." HTA also announced on December 7, 2010 that it would close its current offering on February 28, 2010.

So what does all this mean? Indications are pretty strong that HTA will try to go public sometime in 2011, but the date is unknown, and the offering could be priced at or below the original $10/share offering price. Therefore, current investors might get a positive return if dividends are factored in, but new investors could face a loss, depending on when they bought and where the initial public offering is priced. No matter what the price, all investors will still be unable to sell at the IPO, and this will expose them to market risk during the lock up period phased-in liquidity period. If the Piedmont model is followed, the lock up period would last for 12 months. Thus, to the extent that you do invest in Healthcare Trust stock, it should be with money you don't need for at least 18-24 months. If the IPO doesn't happen, you could be in for an even longer period of time.

The conclusion I would draw from all this is that buying in the current offering at $10/share is pretty risky. If you like this sector (Healthcare real estate) it may make sense to buy some HTA shares on the secondary market. Depending on the price you get, you could see a pop down the road if the IPO happens. However, unless your broker has talked to JP Morgan and can provide you with an update on the IPO pricing, this is basically just gambling.

A guy named "Shareholder" has also posted a pertinent question in [url=http://www.reitwrecks.com/forum/viewtopic.php?f=2&t=30&p=139&hilit=healthcare#p139]this post on Healthcare Trust of America[/url]. He felt strongly that executive compensation was excessive, performance was poor, and that management was enriching themselves at the expense of shareholders. This all sounds very similar to the sordid Wells REIT story that RW told in the above-linked post on Piedmont.

I've done OK with HTA, but I took my dividends in cash, and "doing ok" ultimately depends on whether the IPO happens, and at what price. Given the illiquidity, the length of time I've held these shares, and the continuing uncertainty (uncertainty=risk) I think I might make a different choice next time.

I hope this helps! ;)

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Re: Opinions on HTA?

Post by DebER » Thu Dec 30, 2010 3:52 pm

Thank you, Clickeroo.
I invested in HTA in July 2008 and reinvested my dividends. I read this article today
http://rationalrealist.blogspot.com/
I'm keeping my fingers crossed that everything will work out positive for everyone. However, if I had read all the negative stuff about
Non listed reits that I am reading now, I would not have invested and I certainly will not again.
Of course an "advisor" recommended this for me and I trusted he had my best interest at heart. Something I will not do again, either.
Thanks so much for responding. I appreciate it.
Wishing you and your a Happy, Healthy, Prosperous New Year!

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Re: Opinions on HTA?

Post by DebER » Tue May 22, 2012 2:22 pm

HTA is going public in June! Hoping for a good outcome.

PEtrader
Posts: 8
Joined: Fri Mar 09, 2012 8:40 am

Re: Opinions on HTA?

Post by PEtrader » Thu May 24, 2012 9:00 pm

HTA is the girl whose parents sent her to a catholic school because she was caught giving head to the entire football team. Even after that hard Catholic schooling, she still hooked up with the whole basketball team at St. Johns.

Long story short, it is a flagrant slap in the face by very smart guys showing how much smarter they are than simple advisors and clients. They took a three legged pig and lathered it in lipstick. I think it is even worse that B/Ds allowed their advisors to even sell this, and it is a shining light on what is wrong with the the pay to play relationship in the BD world. I will say that as an advisor I was very interested in the story once I heard it, but when I called a personal friend who happened to be a wholesaler for them who clued me in on the numbers to look at I was shocked. All that being said the good thing that they did was to not lever up which could allow them to later do so to the benefit of the client, and it is an actual decent asset class to be in which could be your saving grace.

d2row
Posts: 2
Joined: Tue Jan 24, 2012 9:53 pm

Re: Opinions on HTA?

Post by d2row » Tue Jun 05, 2012 10:13 pm

I hear that HTA will start paying $.575/share beginning jun 1 and payable July 1 then quarterly after. They will allow investors to sell 25% at first then another after some time. I think after 18 months u will have been able to have gotten 100% back.
This is lower than 7% but in line with what other publicly trades are offering.

DebER
Posts: 7
Joined: Sun Dec 12, 2010 1:11 pm

Re: Opinions on HTA?

Post by DebER » Thu Feb 14, 2013 2:43 pm

I'm happy to report that I'm very happy with this investment. It has worked out very well! :mrgreen: :D :)

CAPT_DOMM
Posts: 9
Joined: Mon May 21, 2012 1:38 pm

Re: Opinions on HTA?

Post by CAPT_DOMM » Mon Mar 11, 2013 12:26 pm

DebER wrote:Does anybody like Healthcare Trust of America?
Would you care to elaborate. I am not asking for specifics but did you do well enough to change your initial statement of never buying a non-traded again. Just curious.

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